(Closed) OMG, we put in an offer on a house, UPDATE: Need Real Estate bee’s help

posted 8 years ago in Home
Post # 3
2703 posts
Sugar bee
  • Wedding: September 2010

DON’T DO IT! i have heard of this with foreclosures, and with any mistake in paperwork/closing process, the bank will walk away and keep your money!!!!!

i’m excited for you that you’ve gotten an offer accepted, but be VERY CAREFUL with bank owned homes as there are many clauses that are not found in private sales.

short sales/foreclosures are def sticky and come with a price even tho they’re usually really good deals.

we went through a couple of foreclosures and had to walk away because of the bank’s ridiculous demands!

Post # 4
1901 posts
Buzzing bee
  • Wedding: June 2010

I agree! Don’t do it! I have never seen this but am not surprised. You are right in thinking that they will most likely be the ones holding things up and if they drag it out forever, you want ot be able to move on to the next house w/o losing anything. Missjyc is correct when she stated that they can have ridiculous demands. Thay may ask you to repair things on the house and then back out! This happened to my friend’s daughter who was trying to buy her first home.

Post # 5
5263 posts
Bee Keeper
  • Wedding: June 2012

Yeah, I would definitely stick to your guns… I tagged along with my parents on 8 moves before I turned 18 (what can I say, my mom likes the nomadic life) and I’ve never heard of that. 

Post # 8
1317 posts
Bumble bee
  • Wedding: October 2010

Is it possible for the bank will change their mind? Would it help to talk to anyone? I’m still crossing my fingers for you!

Post # 10
3762 posts
Honey bee
  • Wedding: May 2010

Can you maybe increase the amount you are putting in escrow? Maybe that would make them feel better.  I think we put like 2K down.

If you do have to put 1% down to the bank, I would take the contract to a lawyer, not a realtor.  You can make the contract say whatever you want.  When we were trying to close for the first time home buyer thing, we put a clause in there that said, we don’t close in time for whatever reason, the bank/seller owed us the $8k we would have lost. 


Post # 13
3762 posts
Honey bee
  • Wedding: May 2010

Good luck KLP. 

We were in a hurry to close so that we could qualify for the first time home buyer credit (before it had been continued/expanded).  We didn’t want to loose that $8k because they weren’t doing their job quickly enough. 

Can you see if you can work with another agent at that bank then?  What about their supervisor or even their assistant? 

I like your idea to play hardball.  We ended up getting our closing costs paid for and moving in a month early!

Post # 15
191 posts
Blushing bee
  • Wedding: October 2010


I work in foreclosures with some of the biggest banks nationwide, but I am only licensed in CA. I’m not terribly familiar with VA real estate law, and I’m not fully following your situation, but thought I’d clarify what I can. What is the purchase price of the home, if you don’t mind me asking? It’s customary in real estate for the buyer to put down a deposit called earnest money (1% of the purchase price is customary) and then increase that with a downpayment on the loan (for FHA, 3.5% of the purchase price, for conventional/ traditional and first-time homebuyers, this is typically 20%). ALL of these funds should be held by escrow and are there to protect the seller, but not ONLY banks with foreclosures– even a private seller would typically request this. As I said, it’s customary. 

Escrow should definitely hold the funds, though. It’s actually illegal (at least in CA) for your agent to hold funds of yours for more than three days.

Now, as to who gets the money if something happens, well, that protection *should* be built into the contract you filled out for the property. Basically, there are several different contingencies for a real estate purchase. One– inspections. Typically, you will get between 0 and 10 days from the seller signing your offer to have licensed inspectors inspect the property. If you choose to back out within this time frame, you retain the deposit. If you back out after because of the condition of the property, the seller retains the deposit. Two– financing. Typically you have 14 days to cement a loan commitment and back out without penalty. If you back out after the 14 days because of financing, seller retains your deposit. These are the two most common ones banks will allow when dealing with foreclosures.

I have to say though, the 1% is probably non-negotiable, and it concerns me that your agent “has never heard of it before”. In this market that’s been flooded with foreclosures, this has been the standard now for quite some time. It’s an easy way to keep people from putting in false or test offers. By giving you a monetary reason to stay in the transaction once your contigencies have been fulfilled, the seller is only protecting themselves.

Also, I wasn’t really clear but unfortunately, if it’s the listing agent for the bank that’s incompetant, there’s really not much you can do. You may be able to contact the bank that owns the loan or the company that manages the asset (property) for the bank, and file a complaint that way.

Sorry this was so long, I hope it’s helpful. If you have any additional questions or want clarification on something, I’d be more than happy to help. Just PM me.


Post # 16
1207 posts
Bumble bee
  • Wedding: December 2009

I would not be giving the bank any money that’s not included in the contract.  We had a HELL of a time trying to close on our condo and had thought for a while that we were going to have to back out because they were taking so long.  In regards to incompetent agents, the best advice I have is to bug the hell out of them.  Squeaky wheel gets the grease, and all that.  In the end we had to contact the listing agent ourselves, we called and emailed daily asking for a closing day.  If you really like the house, I suggest getting the contract fixed before you hand over any money and then being that squeaky wheel and bug them until you can get what you want.  Good luck!

The topic ‘OMG, we put in an offer on a house, UPDATE: Need Real Estate bee’s help’ is closed to new replies.

Find Amazing Vendors